Govt to give states and cities six months to draft own pension reform

Brazilian President Michel Temer wants to give local and state governments six months to overhaul the pension rules for their employees.

The federal government is going to amend the Social Security reform bill currently pending before Congress to add that proposal. Should states and municipalities fail to create their own new pension rules within the deadline, the federal rules now in discussion will apply.

Last week, Temer had announced that local and state government employees would be excluded from the overhaul bill.

The idea of setting a deadline for states and municipalities to draft their own proposals emerged at a meeting with Finance Minister Henrique Meirelles and Social Security Secretary Marcello Caetano at the past weekend. Their purpose is to make sure the changes take effect across the country as soon as possible.

Translated by Mayra Borges